On the balance sheet, the amount shown for Allowance for Doubtful Accounts is equal to the
A) uncollectible accounts expense for the year
B) total of the accounts receivable written off during the year
C) total estimated uncollectible accounts as of the end of the year
D) sum of all accounts that are past due

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account that represents the estimated amount of accounts receivable that the company expects will not be collected. The amount shown for Allowance for Doubtful Accounts on the balance sheet is equal to the total estimated uncollectible accounts as of the end of the year. Options A, B, and D are not correct as they do not accurately reflect the purpose of the allowance account.

On the Balance Sheet, the Amount Shown for Allowance for Doubtful